On 6-6-2024, the International Financial Services Centres Authority notified the International Financial Services Centres Authority (Book-keeping, Accounting, Taxation and Financial Crime Compliance Services) Regulations, 2024. The provisions came into force on 6-6-2024.
Key Points:
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These Regulations aim to put the regulatory framework relating to development, registration and operations of Book-keeping, Accounting, Taxation and Financial Crime Compliance Services from International Financial Services Centres (‘IFSC’).
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BATF Service Provider means any entity registered under these Regulations to undertake the following:
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Book-keeping services;
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Accounting services;
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Taxation services;
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Financial crime compliance services.
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Registration of BATF
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Only an Ancillary Service Provider (‘ASP’) can provide BATF Services in an IFSC without obtaining certificate of registration from the Authority.
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ASP who intends to provide BATF services will have to communicate its willingness to operate under these Regulations within 60 days from the date 6-6-2024.
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ASP will also have to ensure compliance of the safeguarding conditions.
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Safeguarding conditions:
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Applicant will ensure that the business is not set up either by:
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Splitting up an already existing business;
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Reconstructing of an already existing business;
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Reorganizing an already existing business.
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BATF should not provide services by way of transferring or receiving of existing contracts or work arrangements from their Group Entities in India.
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The Principal Officer, designated by the BATF Service Provider, will be responsible for overall activities in IFSC.
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A Compliance Officer will be designated by the BATF Service Provider who will be responsible for reporting to the Board of Directors or head of the organization.
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BATF Service Provider can carry out its operation in any Specified Foreign Currency. It will also be permitted to have an INR account to defray their administrative and statutory expenses.
